press release

ChevronTexaco Confirms Test at Jansz Gas Field Offshore Australia Demonstrated Extensive Production Potential

SAN RAMON, Calif., Jul. 16, 2003 -- ChevronTexaco Corp. today confirmed that a production test in the Jansz gas field, located approximately 125 miles (200-kilometers) off the northwest coast of Western Australia, has demonstrated the field's extensive production potential. The Jansz-3 well, tested on July 2 in the WA-18-R permit area, flowed at a rate of more than 72 million cubic feet a day (MMCFD).

Appraisal drilling on the Jansz Field earlier this year, by joint venture operator Mobil Exploration and Producing Australia Pty. Ltd., indicated a field size in excess of 760 square miles (2,000 square kilometers) with an interpreted 1,300 foot (400 meter) gross gas column. Including an extension of the Io-Jansz structure into the adjacent ChevronTexaco-operated WA-267-P block, it is estimated that the field contains approximately 20 trillion cubic feet (tcf) of recoverable natural gas.

"We are extremely pleased with the latest appraisal at the Jansz Field," said George Kirkland, president ChevronTexaco Overseas Petroleum. "This assessment, demonstrating the field's capability to produce at rates supporting world-scale development, underscores ChevronTexaco's strategic intent to develop new natural gas growth opportunities worldwide. Looking ahead, the potential for development of the Io-Jansz structure and the Greater Gorgon Area offers great prospects for Australia and for customers throughout the Asia-Pacific Basin," Kirkland noted.

ChevronTexaco holds a 50 percent interest in the WA-18-R permit area, where the Jansz-3 well was drilled; ExxonMobil holds the remaining 50 percent equity interest. ChevronTexaco also holds a 50 percent interest in the adjacent WA-267-P block (where ExxonMobil holds 25 percent, Shell 12.5 percent and BP 12.5 percent), which contains an extension of the Io-Jansz structure.

Combining its stake in Io-Jansz with additional interests in the North West Shelf and Greater Gorgon ventures, ChevronTexaco is the largest holder of uncommitted gas resources in Australia. ChevronTexaco's share of total gas resources in the area is in excess of 25 tcf representing a world-class resources base.

ChevronTexaco, operator of the Gorgon Joint Venture, is currently seeking approval to develop a gas processing plant on Barrow Island, located off the northwest coast of Western Australia, for the development of Gorgon gas. The planned US $7.2 billion (Aust $11 billion) initial development for the Gorgon Field is a key to unlocking the vast resources in the Greater Gorgon area.

Note to Editors:

Jansz -- named for Dutch East India Company sea captain Willem Janszoon (Jansz), who was the first European to sight the Australian coast in 1606 -- is a single gas field contained within two permit areas, WA-18-R and WA-267-P, and is situated in the Indian Ocean offshore Barrow Island.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

This news release contains forward-looking statements about significance of the results of testing of the Jansz gas field to the ChevronTexaco and others. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are the results of the evaluation of the options for the field's development, actual size of the Jansz gas field, local political events and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "recoverable natural gas," "resources" or "gas resources" are used in this press release that are not permitted to be included in documents filed with the SEC.

Updated: July 2003